Stock Feeding Frenzy, Citigroup Saved, Battered Financials Bounce

Friday’s rally continued today leading to the biggest two day gain in the major indexes since 1987. News of a massive government guarantees to save Citigroup sent financial and other shares skyward in a stock feeding frenzy. The indexes were on an upward trajectory for most of the day, with profit taking knocking them off the highs near the close. The DJIA added +396.97 to 8443.39, the Nasdaq surged +87.67 to 1472.02, and the broad based S&P 500 jumped +51.78 to 851.81.

Citigroup
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– Exploded up 55.17% or $2.08 to $5.85/share on the heels of an aggressive government plan to save the ailing bank. $306 billion of guarantees provided investors confidence to jump back into C and other financial shares gained as a result.

Apple
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– JP Morgan lifted its Fiscal 2009 profit estimates 7.3% due to growing demand for Mac notebooks. The stock responded by climbing 12.38% or $10.22 to $92.80/share.

New York Times
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– Citigroup raised its rating to hold from sell, resulting in shares surging 23.60% or $1.27 to $6.61/share.

TASER International
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– This one time day traders’ favorite stock advanced 36.80% or .99 cents to $3.68 on the heels of an order from the LAPD.

Oil climbed $4.57 to $54.44, gold surged $27.70 to $819.50 and the fear index VIX plummeted 10.97% to 64.70.

Market Snapshot

Dow

+396.97 8443.39

NASDAQ

+87.67 1472.02

S&P 500

+51.78 851.81

Economic
News

Existing Home Sales (Oct): Consensus 5.05M, Prior 5.18M

Chain Deflator-Prel. (Q3): Consensus NA, Prior 4.2%

GDP-Prel. (Q3): Consensus -0.6%, Prior -0.3%

Consumer Confidence (Nov): Consensus 39.5, Prior 38.0

Durable Orders (Oct): Consensus -2.5%, Prior -0.8%

Initial Claims (Nov 22): Consensus NA, Prior NA

Personal Income (Oct): Consensus 0.1%, Prior 0.2%

Personal Spending (Oct): Consensus -0.7%, Prior -0.3%

Chicago PMI (Nov): Consensus 38.5, Prior 37.8

Mich Sentiment-Rev (Nov): Consensus 58.0, Prior 57.9

New Home Sales (Oct): Consensus 450K, Prior 464K

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